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Use the following information for the next 3 questions. AbbVie Company is considering to purchase a new control device. The cost of the new device

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Use the following information for the next 3 questions. AbbVie Company is considering to purchase a new control device. The cost of the new device is $58,300, and the machine will be depreciated straight-line over a twoyear period to zero salvage value. The firm's tax rate is 40%. At the outset of the project, AbbVie Company anticipates investing $5,100 in raw materials inventory. Management has decided to terminate the project in two years and sells the device at an anticipated used price of $9,720. AbbVie Company has forecast sales and costs over the two-year time horizon: AbbVie Company expects that it will have to add about $5,940 per year to its net working capital in year 1 (i.e., net working capital investment in year 1 is $5,940 ), and add nothing in year 2 . What is the initial investment, i.e., start-up cost (C0) ? $63,400$58,300$61,870$53,200 What is the net operating cash flow at the end of year 2 , i.e. C2 ? $68,552 $79,590 $79,592 $63,342 What is the net operating cash flow at the end of year 2 , i.e. C2 ? $68,552 $79,590 $79,592 $63,342

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